Case Study: Kroger cuts last-mile cost with Alteryx

Kroger cuts last-mile cost with Alteryx

Kroger, a major grocery retailer, faced the challenge of optimizing its e-commerce delivery operations to understand and reduce its true cost to serve for online orders. The company needed to see the financial impact of routing decisions before deploying delivery vehicles to ensure growth did not erode margins. To address this, Kroger utilized the Alteryx platform to build a routing simulation model.

Using Alteryx, an e-commerce operations planning engineer built a complex in-house routing simulation. This solution enabled Kroger to perform scenario and what-if testing on historical order data, visualizing how factors like delivery windows and vehicle speed reshape routes and costs before a van leaves the store. This provided a sharper view of cost-to-serve trade-offs across their entire network, turning data into confident operational decisions and scaling a single use case into repeatable insight.

Kroger